Implementation of Global Strategy

In a global environment, the strategies that managers pursue have a significant effect on a business performance as compared to the competitors. Hill and Jones define strategy as a set of actions that a company’s managers put in place in order to increase performance of the company (2013). When the strategies lead to a superior performance of a company relative to its competitors, then the company is said to be at a competitive advantage. This is a case study of Federal Express, in the small package express delivery industry. It

We found innovation, cost reduction and market conditions as key elements supporting a successful internal strategy and strategic alliance and diversification to be among the most widely applied strategies for a foreign market penetration and development, while fusions and licenses were the least preferred.

Internationalisation advantages purely relates to the fact that should it be advantageous to internationalise once all things are considered, it should be done. Thus, Sternquist’s (1997) adaptation of Dunning’s (1981) elective paradigm theory only captures the motives behind internationalisation and whether it is the right idea to expand globally; it does not focus on the strategy firms undertake to enter foreign markets and how they behave once there.

Dunning’s OLI paradigm (1976) is used to support firms to locate its production in countries that are financially beneficial for them. According to Dunning, “the paradigm offers a holistic framework to take in consideration all of the important factors that influence the decision of a MNE.” (Stefanović, 2008, p.241) FDI is determined through the composition of the three powerful advantages; ownership, location and internationalisation as shown in figure 1. The thesis is to assess, ‘why go multinational?’, ‘how to choose the best location?’ and ‘what actions have to be taken to enter a foreign market?’

resources of supply means that companies need to look for resources at the lowest possible

Multinational Enterprises usually find creating synergy across countries difficult. However a few companies have been quick to gain competitive advantages by developing a joint strategy. MNEs that fail to do this will lose their competitive advantage in China, India and globally. GE and Microsoft are examples of two companies that have effectively combined their China and India

For future research, an issue that interested me is the increasing of cultural convergence. Can MNCs leverage resources and standardize organizational practices across cultural boundaries? In my opinion, it is possible but really difficult to achieve even the world is becoming more global since there is no truly 100% globalization. Globalization does not mean that every country will become the same but it makes people realize the differences between them when they move out of their shells. When a firm goes abroad different strategy will be used differently on each country so there is no universal strategy or standardize organizational practices.

Emerald Article: Strategy formulation framework for vocational education: integrating SWOT analysis, balanced scorecard, QFD methodology and MBNQA education criteria S.F. Lee, K.K. Lo, Ruth F. Leung, Andrew Sai On Ko

Hitt, M.A., Ireland, R.D. & Hoskisson, R.E. (2001). Strategic Management: Competitiveness and Globalization, 4th edition. Australia: South-Western College Publishing

The forces of globalization are generally credited with the major role played in increasing the access of organizations to countless resources. Due to market liberalization for instance, large corporations are able to import cheap resources from various global regions and as such patronize the market through price leadership strategies. Nevertheless, another crucial characteristic of globalization is that it allows economic agents an incremental access to larger customer markets. This virtually means that manufacturers get to sell their products to numerous global regions and exponentially increase their revenues.

Yip’s regularizing contingency framework has been borrowed precisely from the foundation of co alignment. As stated, “The degree of a firm’s global strategy depends on the industry’s globalization potential as defined by market, cost, governmental and competitive factors”

Managers of multinational enterprises (MNEs) often attempt to export their organizational practices to their subsidiaries worldwide. However, they soon realize that some

The objective of MNC to operate in other countries is to gain competitive advantage through several ways. Firstly, MNC is able to take advantage of difference in country-specific circumstances. For example, MNC may choose to locate its productions in less developed country like Vietnam to gain cheap labor cost. Secondly,

These large MNCs are based almost exclusively in advanced industrialized countries; ninety-nine of the 100 largest firms are from the United States, Western Europe, or Japan and more than 5/6ths of all parent corporations are based in

Subject : Appraisal of a MNE's recent market entry (2007-2010) ( 1. Firm Motivations for internationalization 2. Entry Strategy 3. Corporate Strategy)